The latest ANZ/Property Council Survey shows that the New South Wales property industry has dropped in confidence.
The NSW Property Industry Confidence Index has dropped six index points from 145 to 139 over the quarter, and is the largest drop in confidence of any state.
“Although the NSW property industry still leads the nation in terms of confidence levels, this latest survey shows that the industry’s outlook has softened with lower overall expectations in terms of capital growth and the state’s economic growth,” said Jane Fitzgerald, the Property Council’s executive director for NSW.
“The NSW Government has taken the foot off the pedal on key reforms and these results show we must not rest on our laurels – action is needed.”
The survey revealed that capital growth expectations across all sectors in NSW have dropped, demonstrating a more subdued outlook. “Yet expected staffing levels are still strong, which means the industry will continue to provide jobs for the state’s growing population,” Fitzgerald said.
With residential sentiment continuing to soften, the Berejiklian government needs to take action to strengthen the housing supply pipeline.
“Tighter debt financing has provided a breather for house prices, yet we will only see lasting relief if we see a wider raft of reforms implemented,” she added. “We have seen the recent announcement of initiatives that directly affect the property industry in the state government’s housing affordability package and the state budget. Now we must see action to match the words.”
Key planning reforms need to be delivered to ensure that the industry can continue to build a global Sydney, as well as provide the jobs and investment the state needs.
“This latest survey shows the industry’s confidence in the state government’s performance is on a downward trajectory. To inject a renewed confidence in the industry and ensure we meet critical housing targets and better planning outcomes, we must see action to back up the recent rhetoric,” she said.
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